Moura Dubeux Engenharia S.A. (MDNE3) Earnings Call Transcript & Summary

Good morning to everyone. We will now start our presentation of the results for the second quarter of 2025 for Moura Dubeux. I'm Alan Aquino and presenting the results will be Villar, our CEO; Diego Wanderley, CFO; Diogo Barral, Director of Relations with Investors. [Operator Instructions]. I'd like to remind you that any declarations that may be made during this conference are based on premises of the directory of Moura Dubeux. The future considerations are not guarantees of results as they involve risks and uncertainties and depend on factors which may or may not happen. Having made this disclaimer, Villar, please go ahead.

Thank you, Alan. Good morning, everyone. It's very good to be with you, talking with you again once again about our results, our earnings for Moura Dubeux, a year in which the company consolidates at a new level, not just a good year, it now has become the basis of what we see as our next 5 years of Moura Dubeux, principally and what is touching with operational data and over time, which will become financial data as well. Something that's important for you to mention to you here before our CFO and our IR Director start to make the operational and financial results, I want to comment on a few points that I think are important to -- on which you can base your idea of what's happening and what we do during the next months to close out our year of 2025. In the second quarter, we launched BRL 1.9 billion. And I can give you a change in levels and the perspectives that you have been seeing. You're being guided to something close to BRL 3.5 billion in launches this year in the last 12 months. We've already done BRL 3.8. So this data should be revisited for 2025. We will surpass easily the BRL 4 billion in launches, probably closer to BRL 4.5 billion in launches. And so that this does not bring any risk operationally or to the capital structure of the company. These launches have been concentrated in closed Condominium projects and in larger projects. They are not projects that are so big that they worry us, but these are projects that change the level at which we operate. It's been that way since the beginning of the year. What's opened here in this first slide of this BRL 3.8 billion, confirming what I'm saying, BRL 2.7 billion have already been in Condominiums and BRL 1.1 billion in the Incorporation or Development model, completely concentrated in the Mood products. And in the future, we're going to have a closer mix with [ UNIQA ], which is being -- is naturally see that we're going to have a vehicle for BRL 1 billion in Mood and BRL 1 billion in UNIQA products. And in a minute, I'll be talking about our business plan for Condominium, [ close ] Condominium Moura Dubeux. We're more and more migrating towards luxury projects, and we leave the middle class for Mood and UNIQA, which tends to be a mix of about BRL 4 billion for our business plan. Occasionally, this year has a chance, we're going to come out ahead of BRL 4 billion. It's not normal to expect that every year. But looking forward, we will make this do BRL 1.5 billion more than what we have seen for this year. For the second quarter, the Adhesions to Condominiums have become a market of BRL 1.2 billion, bringing us to a 12-month accumulated of BRL 3.2 billion, which puts us among the medium- to high-income developers that sell most in Brazil, probably with these new numbers, we'll be position at a level of almost the 15th of August. And we are already at the same rate of what we did in the last quarter. We closed July with something that was close to April. And in August, we'll close with something very similar to what was May. So probably we'll be -- we'll have a difference similar to what was in the second quarter. And when we opened the BRL 3.2 billion, we see a 65% from Condominium models and 35% in the Mood market. Mood reaches a level, a relevant participation in our results, Moura Dubeux's results. And immediately, we're starting to have a reflex in the increase of revenue. Just in the second quarter, we reached BRL 665 million of net revenue, with a gross -- adjusted gross margin of 34% with the disclaimer that what we had in a slight reduction in margin is not tied to the behavior performance of the composition of the project. What happened was that there was a return very significant that was recognized in the second quarter where a land plot which was purchased when it was not a physical swap that becomes into cash. When it's purchased in cash, we have to reduce it, but it's influenced our margin, but it does not change in any way the profitability of the company. So I'm going to bring you a point of how much we have in terms of terms. When we look at the same revenue for the last 12 months, we see BRL 2 billion. We said we were going to do more than BRL 2 billion in revenue. We've already overcome that amount and it will grow until the end of the year. We believe that this number will be no longer a basis for analyzing the company and 51% of our revenue came from Condominium and Incorporation. Today, the company is what we expected that in the future, we're going to have a mix similar to this with a reduction -- a slight reduction in the Condominium line because we cannot have the total revenue that we see there. We don't have a revenue for units. we have 3 sources of revenue, which reduce our participation even in the -- at least the business plan more balanced. Here, the net revenue of the quarter, BRL 325 million. If we annualize that number, you'll see something that we have not offered as guidance, and we don't want you to take this -- please don't turn this into any type of normalization or guidance in the short term. However, we had spoken in the first quarter [indiscernible] that's reaching BRL 270 million, BRL 280 million was mistaken and we should go at least to BRL 350 million. But again, we have already tried -- always tried to be very conservative. And one has seen that the model we delivered a better operational model. So for guidance for 2025 we should be working with at least BRL 380 million. We have no longer as our floor, this BRL 350 million. So based on what we performed in these last 6 months and what we're seeing today in a conservative way, we think that BRL 380 million is the floor for our profitability. We get to 2025 at no moment do we longer see this as an annualized number. The net margin passes 18% and the average return reached 21%. And we will certainly finish the year above that level. Our objective is not to have a company that comes surprising with more and more launches and more numbers. We're not -- we don't have a commitment to grow. You see this new level of the company, but the growth above this level is marginal because we have a photo, a premise, a strong premise of not wanting to leverage the company. We closed the quarter with only 11% debt-to-PL. And we don't want to open up any -- to become deleveraged to pay dividends. Brazil oscillates greatly with the index that reflect the operational that of the company and our structure of capital without being leveraged, at least it's -- the income is ours. From everything that we have under contract today in the company, just some pass-throughs to be done of the projects -- of the Development projects underway without considering any other sales. We have BRL 1.4 billion as the value of our portfolio with the reducing the funds that we start to receive. Just for land turnovers, the Condominium projects launched receivables are almost BRL 800 million. Of this, below that, we've never had a single nonpayment. And the number that I'm giving is net of any obligations for land. It's an amount that's a significant amount. We don't have -- we don't want to anticipate any of these amounts, but it gives us a great deal of security with the company deleveraged the good sources of revenue after the end of our projects or the sale of a property, which is already consolidated, which permits our strengthening of our cash position, leading to a new level for the company. First of all, it's very important to reposition all of you at this new level of the company. In this new perspective, again, there is not optimism. I'm not selling you something that any perspective. And since we don't have a great deal of certainty of what we're able to do, a lot of people in the first quarter thought that we were being -- that I put my optimism in the numbers. And now in the second quarter, I'm going to say no. What I'm telling you is because we have a great deal already launched ready to come back, but has not gone through our financial statements yet, but will come in the third by products with an excellent performance of sales. Which -- what types of products are these? Let's go to the next slide. The complex of the new port Novo Cais, 100% Moura Dubeux , a project for urban transformation. I can't say it's the biggest, but it's one of the biggest real estate projects in Brazil, a transformative project for Recife, project that changes the center of gravity in the development and also at the same time, creates a new source of desire, residential desire. We have launched in the last semester, Lucena Plaza and the Avenida, Cais Avenida, and we decided to anticipate this because we saw demand from our clients in new Beach Class Novo Cais and the Moura Dubeux corporate. It's our -- but it's a compact line that you know well. And together, these 2 will be responsible for an excellent result in the third quarter as well as was the second quarter. Going forward, we also -- beyond the Mansão Seara, can imagine we see the beautiful view of Fortaleza, this beautiful Northeastern capital. We're bringing these 2 projects, the Arthur Casas, our partnership and inserted into the reality of the city. And going forward, we have the Mansão Seara, which is closest to the sea and the Infinity on the right-hand side, which was just released in the last 2 weeks. We had 200 sales paid for, 200 units were sold in 2 weeks. And today, we have another 100 units on the street, BRL 519 million only for the Infinity project, which talks a little bit about the proposition of the company. We want to change the landscape, bring development, bring innovation and bring for our shareholders successful project, which brings good profitability for our clients, something that we have the potential of realizing their dreams, which also help us to change this landscape. Following along in Salvador on the left, we have the Elleve Horto. It's a more of the same of Moura Dubeux, Elleve Horto but has a very unique signature and a new buyer neighborhood in Salvador, a neighborhood which already has 12 projects under development in Horto Florestal, a project of close Condominium, BRL 119 million in PSV. And in August, we're going to go to the market, which has been going at a good rate of sales. And finally, to close our BRL 1.9 billion of launches for the second quarter, the Beach Class Natal, which is a Beach Class project in the smaller cities like Natal, João Pessoa and Aracaju. When compared to Salvador and Recife, we usually don't invest in big projects in those cities because of questions absorption then -- but the Beach Class did very well in the first 12 month had BRL 35 million in Adhesions in 1 week and BRL 78 million in PSV -- net PSV. We're going to remind you where we should guide the company in terms of launches and sales. We've already overcome certainly our of the year, closer to BRL 4.5 billion than the BRL 3.5 billion that you see now with BRL 318 million for net profit will be our new base for the year. It's not -- no longer the ceiling or the floor. It's what we expect. We believe that we'll follow along this year, surprising you in spite of the macroeconomic discussions, we have taken a great deal of effort so Moura Dubeux can differentiate itself and deliver value to our clients, we surprise them with projects that generate desire and demand and for investors so that they find the best allocation of profitability of its capital. Our commitment, as you are seeing, is to be able to sell projects even with interest rates of 15%. And with this rate -- with this information, we're consolidating as one of the biggest developers in the country. We're absolutely absorbed by this desire to be the best company. I'll pass it over now to Diogo Barral, going to give you some operational data. And after that, we'll talk about the financial numbers, and I'll be back at the end for questions and answers. Thank you.

Thank you, Villar. Good morning, everybody. I'm going to get into some details of our operation. Starting with the launches, the company closed the second quarter launching BRL 1.9 billion, which presents a growth of 192% year-on-year and 363% in relation to the first quarter, 363% compared to the first quarter. And the balance of our [indiscernible] Condominiums launch, which in this quarter was approximately 80% of our PSV our launched PSV considering BRL 1.9 billion. On the right-hand side, we saw the accumulated number for the year. We reached BRL 2.3 billion in PSV launched, showing an advance of 130% in relation to the first half of last year. Looking at sales, we're closing the second quarter with BRL 1.2 billion commercialized sold, which represents 142% year-on-year and 116% in relation to the 16% in the first quarter. Year-to-date, we reached BRL 1.7 billion with an increase of 101.9%, almost 102% of increase in relation to the first half of last year. On the right-hand side, our indicator of cancellations, we can see the trajectory, which continues to be at a very healthy level. We closed the second quarter with the 6.5% of our gross sales. And we always bring to you this number adjusted where we eliminate from this -- the changes in title and ownership and the ones that represents -- when we take that number out, it's only 2.9% of our gross sales are in cancellation below the PSV of the company. It's worth mentioning that if we look at the trajectory, this is the fourth quarter, consecutive quarter in which the company presents growth above -- sales above 50%. At the end of the second quarter, this indicator was 55.6%, which puts us as the medium to upper level company, which has the best indicator for sales speed in our segment. On the right-hand side, we bring the PSV lenses. The dynamic was not different. We closed the second quarter with 57.4% of PSVs sold, which shows that we have been assertive in our strength of our brand in the region where we have operations concentrated. Going forward, look at our stock, which even though it has increased in relation to the first quarter, came to BRL 2.8 billion. We should point out that the indicator of coverage remained at 10 months. Another point [ to understand ] on the screen, but it's worth mentioning that our stock of ready to occupy represents only a very low amount in relation to the total value of our stock, 5%, actually down in relation to the first quarter. Our landbank, company has been efficient to our strength of our brands and our relevance in the region. You see that we launched BRL 1.8 billion very quickly. So we practically didn't change anything in relation to the second quarter and the first quarter, BRL 1.5 (sic) [ 9.5 ]billion distributed in 53 plots. Most important thing here is the way we acquire these properties we have acquired most of them through swaps, 70% of this BRL 9.5 billion is in swaps and only 30% in cash, which contributes to the dynamic cash flow of the company. Analyzing the projects underway, we finalized the year with 61 projects and 39 in Condominium. And to close now this operational part of the presentation, always bring the evolution and how it will work the deliveries of the company for the next year and for the coming years. In this first half of the year, the company delivered 6 projects. And over the next months, by the end of the year, we have 14 more projects to be delivered. I'm going to leave it to now with Wanderley, who's going to go ahead with our financial highlights.

Starting with net revenue, we delivered in the second quarter BRL 660 million, growth of 70% in relation to the second quarter last year and approximately 50% above the first quarter of this year. We've been able to see a relevant growth in the revenue of the Condominium area, which in this quarter, we had the recognition of the Cais Avenida, the delivery of Cais Avenida, which contributed to the growth of our revenue in the Condominium segment. In the accumulated year-to-date, we passed BRL 1 billion in revenue, growth of 68% in relation to 2024. Both segments have growth in revenue, incorporating more results to our financial statement. Looking at gross revenue, we delivered BRL 230 million in the second quarter, growth of 35% and 38%, both in relation to the same quarter last year as well as the first quarter of this year. But it's more important to maintain that the maintenance of the gross margin of the company, which we delivered in the quarter is 34.4%. Diego mentioned a little bit about how that was impacted by the operation of -- which didn't affect our profitability. In the year-to-date, we've seen delivery of BRL 338 million, a growth of approximately 50% in relation to last year, which is the consolidated margin of close to 38%. And the participation is 55% coming from Condominiums and 45% from Development, helping the Development was very stable for the last few quarters, hitting 33% in the adjusted margin and the Condominium with 36.5%. Since last year, when we launched the [indiscernible], we have been recognizing with a participation -- cash participation is higher and with a PSV that is more relevant and it's a more iconic property. And we have a cash participation. It's what's been happening in the recent quarters. The margin that we saw 40% to 50% when we have to make launches of Condominiums, which have cash participation and paying for the land, it's a margin that runs close to 35%. Looking at our expenses, we have diluted both in the commercial as well as administrative costs. On the left-hand side, on our commercial expenses, we delivered BRL 33 (sic) [ 55 ] million, which is 6% of our sales -- 4.3%. And administrative expenses, we delivered BRL 31 million in the second quarter, a dilution also in relation to sales which represented only 2.4% as well as in relation to revenue, which is 4.7%, which is a percentage well below what we've been delivering in recent quarters with -- in relation to important activities. Following our EBITDA, which is adjusted, we delivered BRL 333 million in the quarter and accumulated of BRL 367 million with a margin over the last 12 months of approximately 19%. And we look at what we've done year-to-date, BRL 222 million in operational profit growth of 55% in relation to last year, a very relevant growth in just 1 year and a maintenance of operational margins of above 50% for our results, for our profitability. Looking at net revenue, we're delivering BRL 325 million, the biggest quarterly profit in the history of the company, which shows the work that has been being done by the whole team and the delivery of these projects, projects which we have been selling well above the average of recent quarters, which brought us an accumulation in the last 12 months of BRL 365 million in ROI (sic) [ ROAE ], which is passing easily almost 21%. When we look at the profit of the last 12 months, looking at what we've done year-to-date, BRL 190 million in profit, 66% -- 65% in growth and growth -- expressive growth, which shows both the operational growth of the company as well as the alignment of the cycle of projects. It's natural that the results start to appear as we evolve with the construction. The net margin this year is 17.3% of net margin. And the results [ appropriate ], which is to be recognized, have an important growth of 14% of results to recognize, which is a great deal, which is the Mood project. We sold almost 1,000 new units just this year, very representative on our result, and we have a lot of results to be recognized to add to our finance. And this is coming on the margin in the recent months, recent quarters, and we look forward, we have more to bring on to our financial statements with a gain of 1% in our gross margin, which is with the big growth of Mood in our results. On the right-hand side, we see the results of closed Condominium with administration fees, approximately gross margin of 28% in the administrative fees. When we launched these, this was recognized as an increase. So we have BRL 355 million in growth of 23% in relation to the first quarter. To close here the financial highlights. We bring our cash position, how much we generate and burned in cash. We have an operational BRL 10.6 million. We had BRL 180 million in net revenue -- net debt, which represents 10.7% of our [ NPL ]. We had BRL 10 million in cash. And in the last 12 months, paying BRL 105 million in dividends. So we now reached that this level of BRL 180 million in net debt. Here we bring our expectation of how we'd like to handle our cash and how this is connected to our model. We still expect to run the company between 15% and 20%. We have a cycle of cash burn, which should begin until the first or second quarter of '26. This is considering the payment of dividends. But just to remember that we have a forecast of paying another BRL 50 million in dividends at the end of this year. And next year, we're going to see the possibility of even increasing that BRL 100 million which you have been doing repeatedly starting with the second half of the year where we have more cash, generate more cash. So we're going to be delivering BRL 10.7 million and will stabilize the company. And then starting in the part of '26, we have delivering a strong cash generation. So these are our financial highlights, and I'm going to pass it back over to Diego -- to Alan for our questions and answers.

Very well. [Operator Instructions]. Now our First question comes from Matheus Meloni of Santander.

First of all, congratulations for the results, and thank you very much for the opportunity to make a question. From our side, we have 2 questions here. The first, I think it is very clear in your speech, the growth of launches. So do you consider that this capital structure of the company today is prepared for this pipeline of growth? And also, do you understand what do you see as the maximum -- what's the maximum leverage level at which you would be comfortable to operate with net debt to PL? The P&L, we saw in this half -- this first half, you had nonrecurring revenue from liberation of land plots. I want to understand a little bit what was that effect and understand the rationale that caused you to do that and understand a little bit more about the land plots, which may go through this process. So on our side, that -- these are questions?

Matheus, very well. Thank you for your questions. First, talking about our model of the launches. In the past, we left, made it clear that our commitment was not with growth, but with profitability and low leverage and the realization of our clients' streams. Every time that we build we always look for the next 5 years. We do not accept even after the payment of dividends that the company goes above 20% of leverage. This is our limit to tolerate the growth of the company with all the premises of conservativeness that we utilize with our results. This year, we're going to get to BRL 4.5 billion strongly impacted by in launches and sales in the Condominium fish -- closed Condominium model, which permits us to not affect our structure, our capital structure, especially when we acquire land without swaps. It's very small compared to the size of our operation, and we have no -- very little debt. And so we have had this growth this year. But when we stabilize the company to look at the next 5 years, we consider very conservatively that the Condominium will not have that same level which is important to give you safety and security that our reading of our business plan is to reduce the size of the Condominium operation, which is choosing projects that are more and more profitable and BRL 1 billion with UNIQA and BRL 1 billion with Mood. It doesn't take us -- don't bring UNIQA to be a cash generator. But we know that in practice, [indiscernible] has been -- is being well run and has generated cash similar to the Condominium, closed Condominium model. Mood is BRL 1 billion. And then we'll have a plan -- a more traditional business plan, a portfolio of 80% and 60% at the launch and financing, even though our reality is that half of our units are included in the fourth degree but it's obvious that we work with, we have to attend this level of participating. And the second part of your question, which was -- I think was strong on the answer on the first part, everybody knows that our P&L, which we have had, 4 areas which we considered good for investment, marking above BRL 200 million with reports from independent about estimators. We want -- we never did anything that wasn't right to do. It was more to focus on industrial units due to their location or the public in which they were inserted. At the end of the day, we sold half of that exchanging areas for real estate products, part of which has already been launched and part of which we have to receive as receivables to be recognized over the next 36 months. So it reduced significantly because of this swap. And we believe that the other half will do the same. It will be adjustment of prices. But basically, it's that. The accounting rule when a report comes in above what was estimated, you make an adjustment. But when it's smaller, then we have to also help us to do these adjustments. And since we didn't do [ adjustments ] because we marked it down, it is marked up due to a question of being conservative. I judge it's quite high, BRL 100 million, BRL 112 million, but irrelevant compared to our new, the size of our company. But it's not because it's irrelevant for us, we had a great deal of relevance compared to what we've just done, and we're going to seek that with certainty.

Next question is from Bruno Mendonca from Bradesco BBI.

Diego, I wanted to examine a little bit more Unica. In detail, you mentioned that about this new project -- product line you spoke about in your presentation, we should arrive at BRL 1 billion sales in launches in the EMEA, Cais Avenida sector. If you could speak a little bit about the velocity of sales and the challenge -- the principal challenge in this road map? If you look at the land bank, we see very little -- very little land bank dedicated to Unica, a little bit less than BRL 500 million. So imagine that you're being very active in searching for properties that can be developed in that. So how is that going in your process of purchasing properties. And what's the model that you've been seeking the amount of purchase because I think that you do a lot of physical swaps. Do you think that in the regions of MCMV properties will work the same way? What's the percentage of PSV that you have seen. And the internal changes, you're going to have a different dedicated sales team. How's the evolution of all that? These are all several questions, but on the same subject. How do you imagine with the impact of this ramp-up in this segment -- in the capital structure -- on capital structure of the company. You said that it will probably consume some working capital at the outset, but if you can quantify that or give us an idea of what you expect in the way of capital demands for this specific segment?

It's a very important question. Mood is in our balance sheet. You can already understand that. We've been had launches for -- 13 projects already on the street. And we're expecting [ 2 billion ] in sales and the condominium you know a lot in your world, but I want to talk about Unica. Internally, we're working like this BRL 200 million for the next 6 months. Next year, we should consolidate BRL 600 million of PSV. And in 2027, it will reach BRL 1 billion level. That's our business plan for Unica. Yes, you're correct. Today, on the balance that we have appointed the base date of June of this year, we had this land bank. Since then, we have been adding once every month, new properties for Unica in-house and in all of our land, Fortaleza, Salvador, Recife. In fact, several projects which we had to launch in Moody -- in Mood, we were able to launch in Unica just because of obvious reasons. We expect that in this world of 15% interest rates during the next 24 months, even with the prediction for some reduction, Unica will reach a larger base consumers' cash that Unica or Mood. So we're going to wind up doing this migration because when you look at Mood and reducing the recreational areas, in some places, it's a model from one to another since they participated in the construction system. In terms of land, they've been in different size, we're not very concerned about the demand because they have showed up a lot of properties in different places. So this year, we have -- we used to guarantee these numbers until 2027. However, the model can no longer be in [indiscernible] physical swaps or it has to be order cash flow purchase -- cash purchase or the flow, which is rational for the project and be roughly down payment of 5% of the value of the property and -- or sometimes with no down payment, we wait for the approval of the project to be able to pay the down payment. And then 36 monthly payments when purchasing cash. So it doesn't really demand any consumption of capital. There is the physical swap, yes for Unica, but it's -- just purchasing some land because the land itself does not have the same understanding of value when the [indiscernible] brand comes in. But it's easier to say that -- to do it than to the point of view of the structure, we have just hired a person who has already worked with Moura Dubeux, who worked us [indiscernible]. He just joined the company. He has 2 big challenges. One is our conception that Unica will not just be a real estate development in -- development, it has to be separate from Moura Dubeux and Mood, it's more engineering and less into the process of our company. I will add to in the engineering and the directors of the development of the Unica group setting up the team needed for that. Also in parallel, to be able to run down to diminish our dependence on the construction Moody and Unica have the same systems for construction. They already have 50% fit in the fourth bands, which are clients, who are in that -- which is financed by the Caixa Economica, but even so we have a lot to learn. And we can add with the knowledge of our region, we have evolved a partnership with a purchaser Origin. These are some of the macro lines that I can mention to you right now to be able to understand that we'll be working with Mood, we're going to ramp up last year, we -- and this year, we have a more timid which is a natural level, it's more for Mood than for Unica. In terms of capital structure, [indiscernible] can help me with this. But summarizing, we consider the next few months a cash burn Moura Dubeux in the expectation along the lines of Unica; it has -- it's running separately from the company every year at every angle. The execution of the project Moura Dubeux and we had impact from Santander. We don't see Moura Dubeux together with a debt more than 20% even with this investment year. Starting in May of next year, you can expect that even with these investments in Moura Dubeux, in Moura Dubeux we have cash generation -- consolidated cash generation. So I think that if you have any questions about that, please I'd be glad to explain. We're at your service, if you have any other questions, technical questions.

The next question is from Juliana Vega from Itau BBA.

On my side, there are 2 questions. In the presentation, you mentioned about the launches in the third quarter. If You Can give me a little more details about these launches, sales performance and also in relation to Mood and Unica, if it will also enter into the third quarter or this will happen only in the fourth quarter? And also my second question is about the expenses that you mentioned. You seem to have very controlled expenses in the quarter, bring a reduction in relation to gross sales. What are the major efforts right now to maintain your expenses under control and if we should expect the same levels for the next quarters?

Thanks for your question. In the third quarter, we have some launches in condominiums, a closed condominium models. Infinity is already -- we're already selling. We have another project -- condominium project, very iconic Boa Viagem Avenue, Recife, the most novel address in Recife in the Northeast, it's the type of product and normal would be to expect that it will have a very high level of profitability and also a very strong demand because of its location. What we worked on, as you also saw in Natal, where we talked about that. It's going very well. We see -- we're not going to launch anything in the new port. We're going to wait for next year. Our expectation is to launch more next year. For the year, the third quarter is going to be more concentrated in the last 2 months of the year. We're taking a lot of care with these questions of launches. We're going to be showing some projects in partnership within the Unica brand, and we shouldn't have any more launches from Mood this year. It's possible that we'll launch some Mood in November, December this year but we'll only do that if it's really justified but with a very strong sales -- sales because we operate with a very cautious -- in the number BRL 4.5 billion that we mentioned, it doesn't include any Mood, which could bring us to even BRL 5 billion but it doesn't seem the direction in which we're going. Certainly not what we're offering guidance at this time. Second part of the question, I spoke -- about expense is perfect. From the standpoint of commercial, we wind up in some way, dilute a part of our investment in marketing structure due to the new volume. In terms of commissioning the same level, we gained efficiency in which is the commissioning and a sales specialist or brokers -- market brokers. The question of G&A, we always alerted you all the time since we opened our capital but the G&A compared to net revenue, saying that when we grew, we would have [indiscernible] as possible, the hiring of new people or the information of new structures in the company and continue to be. At the beginning of the year, myself and our people manager did a huge project, sitting down with the leadership one by one with more than 100 meetings understanding how much the proposal of the company and the strategy was developed -- was built in the metrics and action plans for 2026. The teams they needed, where they understood that we, can adjust in some [indiscernible], and we made those adjustments. The company grew so much. And in the net, there was a reduction in our number of employees, when you're leading any organization that grows very quickly, you have to have every once in a while stop and reduce the excesses, which naturally happen with quick growth. So we were attentive to this in the company, and we look at the level of the G&A compared to revenue. We have a structure which is more repetitive. So what we expect from Moura Dubeux is a gain of efficiency between net profit and -- net gross profit and net profit, the gross profit grows more than that going forward.

The next question comes from Ruan Argenton from XP.

Two questions that I wanted to make. One -- the first one is a little bit, how do you see the developments of your condominium model between these markets. We see that Recife has been effectively one of the markets which has high levels of growth of condominiums because of the new port project. And Fortaleza is pulling a little bit of that growth. What do you expect in these 2 markets to bring the most important markets and dynamic of condominiums going forward? Or do you think there's still lots of space to exploit in these 2 markets? Or do you see the condominium being more spread around among other markets or perhaps some other market, which you're looking at? Second question, to understand a little bit about the new port project in Novo Cais, the most recent launch and you did if I was not mistaken is the fifth lot in the new port project. I wanted to understand -- understand a little bit about BRL 500 million of PSV in this project, one of the iconic projects of the company. Does this project continue at the same rate? Or what kind of launches do you have in mind for that project as well?

Ruan, thank you for the question. It's not -- our condominium model is not just concentrated in Recife and Fortaleza perhaps this year but when we go to last year, we'll see that we had almost BRL 1 billion in net sales during the year, strongly impacted by launches of our infinity there, which is carried forward the condominium with our sales in last year with Salvador. It's very consolidated. We have more than a dozen projects in condominium -- in the capital of Bahia. I would say that we have more than Fortaleza actually where we have a great exposition of Mood project in Fortaleza. Fortaleza has come -- in fact some large condominiums, but right number of projects right now, Salvador is ahead of it. Recife, always had the -- our first project and more than [ 270 ] which we've done along over the years. The first was in Recife and we have more than 100 condominiums run this way in Recife. It passed ahead, in terms of volume the past 2 years, in '23, '24. If you look at the average of the last 5 years, you see that Recife has a big exposure. And this year specifically, we have the privilege of having issues in the Lucena Plaza and then in the Beach Class in corporate is just 1 -- there's 2 sub condominiums in Lot 5. We have 2 more projects to launch in the second point of your question probably next year which is 3B and 4, which are projects as big as the other projects, projects would probably will have a high level of profitability. And we should -- I expect that we have a country next year with a little more optimism in terms of the macroeconomics and the important indicators such as employment and growth better than this year, and we're going to start getting prices because it's going to have more and more these things become a desire of the consumer. Then we see how much repressed demand there is. The fact is that we have a business plan, which is robust for close condominiums for this year and next year. We're looking -- we're looking at strategic projects to launch in the second half of '27 in all of our cities, but we're very attentive to in business in the short term, these next few months is for Unica. As you had asked, we have with a great clarity, I'm very certain that in this number that I mentioned to you we're going to deliver that, and we're going to be complying with that -- with the number that we passed to you.

Next question is from Rafael Rehder from Safra.

I wanted to touch on 2 points. First, more aimed at Mood I just understand the qualitative area of sales. We're seeing some signs of the economy affecting, including a lower level of demand? Is it becoming more difficult to quote prices on the Mood products? And then understanding the band 4, quite many of these projects are -- what is the consumer, the potential client of Mood? How much they're included in this [ BRL 2,000 ] of income. The second question I want to talk about the question of deliveries. I see in your pipeline, you have 14 projects this year and 17 projects next year. And this has been qualitatively how is the evolution of these projects? If you're having some delays? Are you hitting up against any bottlenecks? How do you see the evolution? Or how do you see the evolution of these projects. These 2 questions.

Today, let's go by parts. What we project for Mood is less than what we've recently done. As you mentioned, has been growing very quickly. We started to have a little bit more caution because that which is outside of the fourth, which is more than 50% outside of the -- in part of the fourth band in Brazil with interest rates at the current rate. And without any growth of revenue -- of income in this income level, we see more resilience in the profitability, the commitment of income. What we predict going forward, if Brazil reduced its interest rates in some ways, this will reflect on the fourth band of purchases, and we're going to have a higher benefit. However, the speed of sales in the last 12 months is very against what I'm saying. We're above 55% of PSV for Mood, even with 2 Moods that have had a closer to the viability then -- closer than the other 11 Moods, we have -- it has more the product than at the demand. It's the localization, location and the price at which we're able to work, have the best margins, which we have better margins with development and incorporation, it's above that. So yes, you're correct. We predict the size of a smaller Mood than what we have been delivering of approximately BRL 1 billion exactly because of this caution. On the other hand, Mood has shown us adding 2 more projects, the level of activity is much higher than Moura Dubeux and tends to be higher in Unica because of the industrialization and the repetitiveness of our projects, smaller cities for bring a similar -- makes it easier for us to build the hire people and bring more confidence. On the other hand, in Moura Dubeux we start with the -- answering the other part of your question, if we have seen that some projects, principally in the condominium -- closed condominium model are coming into the period of the contract limit of our clients, especially the most distant projects from the urban centers. And so what happens is the question there is productivity of labor. We have a problem -- serious problem in Brazil that all of the builders have a lot of transparency for you, as simple as the 5%, 5.7% of employment, which is full employment. On the other side, you've never seen so many subsidies, social subsidies. It's a recognition over the last 4 years, not only the number of people who receive both of or any other social benefit. And again, the government sends -- aims at this low employment and postal subsidies. So -- and the -- we have nobody who works for base rates of minimum wage. So labor has become a bottleneck. We've done several initiatives that I mentioned to you. Mood was an initiative for that. It's another incentive for that which is the industrialization. There are several steps in the process, which use less labor and also a program for the training of labor which is another effort we're making to our solution but altogether, these factors are to mitigate the structural problem for our country. We are looking at the long-term questions like education and productivity. So what I can say -- whatI can guarantee to you is that this visibility, and this transparency are so clear that is my involvement -- direct involvement not only of the team in general, various fronts of work. But the most important, and this is foreseen in a conservative way in all the numbers that we project to you. For example, if a project A, B, or C has a projection of 30 -- it has to go to 40 months, and its cost is 5% higher than the base that we estimated. All of the projects that haven't suffered any variations similar to it, but when we go to our model, we already consider them the similarity to that project, to project and protect the company from the margins and the production of cash for the next 5 years. The caution that we utilize in our controllership which is respected in our accounting and to avoid any type of conversation or surprise in relation to the actual scenario of Moura Dubeux. As we make this decision, I see the level of growth that we are delivering with the level of profitability that we're bringing to be able to tolerate the company overcomes 20% of net debt to PL. We're not going to do that. We don't have this mentality. We only do this with a greater safety and absolute certainty of not leveraging Moura Dubeux. We believe that we've been the correct use of this capital, which breaks the -- we will grow even more over the year, and what we're doing today is I want to be the company that gives the best results and that gives us confidence in the capital structure which is even more robust to bring to a higher payout, something that between 50% and 70% of the profit of the year. This is the mentality of -- my mentality and of all of those who work in the company but it's how we're going to act and it's how we've always promised to have this behavior. We're not going to change this in any event. We have space to do an anticipation, have the -- the clients we'e going to see in the future, counting with 15% interest rates which has a better level of -- it doesn't seem like a trade-off, which justifies this anticipation. We're going to try and set the same level of correction that we're at, and operating at this new level and more importantly, deleverage the company without leverage. I don't know any company lives which through these challenging moments in Brazil with this capital structure that we have. We did not take advantage of the biggest opportunities for the land. And so these -- after these storms, it comes out even better. If we look at the long term, we have to play in the long-term.

We have no more questions. I'm going to pass it over to you, Diego, for your final comments.

Okay. I want to thank you, especially we thank you for your confidence of our investors in the company. I will start with the client, but the client -- this is a forum for our stockholders and those analysts who cover the company to reaffirm our commitment to the quality of information that you have always due to what's been happening with the adjustments. We feel very, very certain to inform you, and we know very well the responsibility that it is to change the company of the level, increasing the -- it's perhaps to be said quickly. When we say a new -- we're at a new level, I know our responsibility of that which being -- we inform being coming the new floor, not the new -- not the new ceiling. So what we're going to be doing in the next few quarters in the company. I repeat what I've been saying to the market, our stock even with more than 100% growth this year is still cheap, especially for anybody who has this privileged information about the number of the performance of our team believes even -- we believe even more in the Northeast and our client base and on the capacity of Moura Dubeux to make -- to monetize your participation. I thank you for your confidence, your trust. And [indiscernible] are here with me today to answer any other questions in private. I hope you have a good vision -- of the vision of the company for the next 6 months, for the next 1 or 2 years or the next 5 years. Thank you all very much, and have a great Thursday. [Statements in English on this transcript were spoken by an interpreter present on the live call.]